The Canadian, Australian and New Zealand dollars recovered slightly from their steep decline yesterday.
Next week’s data releases imply continued volatility in the commodity currencies, as Canadian retail sales figures are projected to be higher in light of 33 year low unemployment figures and wholesale sales rising at the fastest pace in 13 months. In the backdrop of a suffering economy, consumers continue to be the pillar of confidence, as projections imply continued spending in the coming months. Down under the New Zealand trade balance forecasts remain positive, boosted by the surging prices in dairy export, but with the recent declines in commodity prices, it remains to be seen if the economy will still continue to show a trade surplus. Although New Zealand GDP forecasts imply growth in the economy, the country’s finance minister fears the possibility of a short lived recession, as consumer confidence dips to a 19 month low.
